asterisk2a + rackspace   4

Will Somebody Finally Buy Rackspace, Please | TechCrunch
In today’s cloud market climate, a mid-tier player like Rackspace has been caught between a rock and a hard place for some time, squeezed in an infrastructure service market dominated by big players like Amazon Web Services, Google Cloud and Microsoft Azure. As these players engage in a fight to the bottom in an escalating pricing war, a company like Rackspace whose main focus is infrastructure services finds it increasingly difficult to compete, especially when these other companies can cover their losses with more profitable parts of their organizations. [...] Faced with that kind of landscape, Rackspace walked away from the IaaS [ Infrastructure as a Service ] market altogether last month, moving to what they were calling a managed approach. In other words, they would help companies manage their cloud services.
Rackspace  differentiation  differentiate  cloudcomputing  Wall  Street  AWS  Amazon  Google  Cloud  Microsoft  Azure  PaaS  SaaS  IaaS  customer  service  service  industry  convenience  Services  service  economy  customer  experience 
september 2014 by asterisk2a
Box’s updated S-1 contains onerous hidden penalties if the company is late to IPO | PandoDaily
As I’ve written time and again, Box’s destiny is hardly certain at this stage and drawing such rigid lines in the sand could easily come back to burn the company. Levie, it seems, had no other choice than to accept these onerous terms. It’s not altogether uncommon for late stage investors to request downside protection when a company’s performance is in question. Early stage investors do the same by way of liquidation preference and discounted, capped notes. But the very extent of TPG and Coatue’s protections suggest that Box was in a particularly bad negotiating position. With just eight months of runway left when filing its S-1 in March, this is indeed the case. [...] +++ insert price war from Google and Amazon. Rackspace not able to compete with companies that can feed Zero Margin Offerings through cashcows (AdSense) - http://youtu.be/8uMEjg9vVQA / Or the other way around; VC firms buying into an IPO for 2-3x return and the name of the company on its homepage http://bit.ly/1jpyZTm
Box.com  Box  IPO  S-1  Venture  Capital  hunt  for  yield  late-stage  funding  growth  round  Why  Software  Is  Eating  the  World  Software  Is  Eating  World  SAAS  Cloudstorage  cloudcomputing  Amazon  Google  Rackspace  multi-product  company 
july 2014 by asterisk2a
Drowning in venture capital, mobile startups are waging unsustainable price wars | PandoDaily
upside of this up-cycle/up-business cycle? everyone with a little bit of chops and a MVP with little bit of traction can get capital. Downside? Everyone spends their capital. Would never happen in a down cycle. Down cycles are great, you've got more time to build a great team, product and brand. .... "[L]ook at ecommerce 2.0 companies like Fab and EcoMom who blew millions in capital acquiring customers at unsustainable rates, hoping for some magic lifetime customer value to justify the spending. (It didn’t.) “There’s a tension between growing fast enough and having a disastrous bottom line,” Jeff Clavier, Founder of SoftTech VC, says. Clavier was an early investor in Fab, among others playing this game. “If you don’t have growth you’re stuck, but if you have growth with economics not viable in the long term, [you’re making] a real bet that you’ll be funded nevertheless.” [...] companies aren’t developing a sustainable business model. [Freemium works better with Software Product.]
Start-Up  lesson  Start-Up  advice  Lean  Start-Up  VC  Venture  Capital  hunt  for  yield  growth  round  Uber  Lyft  Fab.com  sustainable  sustainability  customer  acquisition  customer  retention  2014  asset  bubble  bubble  Silicon  Valley  Palo  Alto  San  Francisco  business  model  business  plan  user  experience  user  expectations  Amazon  Zappos  free  freemium  SAAS  on-demand  mobile  services  Industry  mobile  first  Uber  for  X  Groupon  Berlin  Start-Up  Scene  Europe  Start-Up  Scene  London  Start-Up  Scene  me  too  price  war  commoditization  commodity  business  differentiation  differentiate  brand  brands  branding  indefensible  values  defensible  values  business  management  management  economics  frictionless  friction  rackspace  training  your  customer  growth  crutch  growth  hacker  traction  Value  Proposition  long-term  thinking  long-term  view 
july 2014 by asterisk2a

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